Friday, Dec 26, 2003
MARC has reaffirmed the rating of Talam Corporation Berhad’s (Talam) RM150 million principal amount of 7-year 5.0% secured bonds with 107.6 million detachable warrants (2000/2007) at A (A flat). The rating reflects its strong underlying issue structure, in which assignment of sale proceeds from the Saujana Puchong development project forms the source of repayment of the bond issue; and the improvement in the group’s financial profile.
A sum equivalent to 20% of the selling price of each unit developed under Talam’s Saujana Puchong development is set aside towards the serial redemption of the bonds, thus mitigating liquidity risk. The accelerated accumulation of funds under this arrangement enabled Talam to prepay RM40 million of the facility’s first series in August 2002, well ahead of the maturity date of November 2003. Accumulated funds as at 31 August 2003 stood at RM27.36 million; sufficient to meet the second series of bonds of RM15 million in November 2004.
Since the last review, five new phases were launched under the RM1.074 billion Saujana Puchong development bringing the total phases launched to date to 18. Sales as at 31 August 2003 amounted to RM794.2 million against total GDV launched of RM796.3 million while billings receivable as at the same date amounted to RM302.8 million.
Meanwhile, bond coupon payments are primarily met from the net rental proceeds from Talam’s Maxisegar and Pandan Kapital buildings. The buildings continued to record a high occupancy rate of 80% and 93% respectively.
Underpinned by good sales performance of its Taman Puncak Jalil and Saujana Damansara projects, Talam’s revenue rose by 16% to RM897.0 million in FY 2003 with a corresponding increase in pre-tax profit from RM44.1 million to RM57.5 million.
In July 2003, Talam’s wholly owned subsidiary, Maxisegar Sdn Bhd (MSB) sold RM1.07 billion of receivables under a selected pool of eligible Sales & Purchase Agreements (SPAs) to Ambang Sentosa Sdn Bhd (ASSB), pursuant to an asset-backed securitization exercise. Part of the proceeds from the sale of the receivables were utilized to settle RM900 million of Islamic debt securities issued by MSB.
With the settlement of the above debt, Talam’s pro-forma debt leverage at the group level is expected to improve to 0.6x (FY 2003: 2.1x). The strengthened capital structure will afford the group the capacity to undertake more property development activities in the future.
A sum equivalent to 20% of the selling price of each unit developed under Talam’s Saujana Puchong development is set aside towards the serial redemption of the bonds, thus mitigating liquidity risk. The accelerated accumulation of funds under this arrangement enabled Talam to prepay RM40 million of the facility’s first series in August 2002, well ahead of the maturity date of November 2003. Accumulated funds as at 31 August 2003 stood at RM27.36 million; sufficient to meet the second series of bonds of RM15 million in November 2004.
Since the last review, five new phases were launched under the RM1.074 billion Saujana Puchong development bringing the total phases launched to date to 18. Sales as at 31 August 2003 amounted to RM794.2 million against total GDV launched of RM796.3 million while billings receivable as at the same date amounted to RM302.8 million.
Meanwhile, bond coupon payments are primarily met from the net rental proceeds from Talam’s Maxisegar and Pandan Kapital buildings. The buildings continued to record a high occupancy rate of 80% and 93% respectively.
Underpinned by good sales performance of its Taman Puncak Jalil and Saujana Damansara projects, Talam’s revenue rose by 16% to RM897.0 million in FY 2003 with a corresponding increase in pre-tax profit from RM44.1 million to RM57.5 million.
In July 2003, Talam’s wholly owned subsidiary, Maxisegar Sdn Bhd (MSB) sold RM1.07 billion of receivables under a selected pool of eligible Sales & Purchase Agreements (SPAs) to Ambang Sentosa Sdn Bhd (ASSB), pursuant to an asset-backed securitization exercise. Part of the proceeds from the sale of the receivables were utilized to settle RM900 million of Islamic debt securities issued by MSB.
With the settlement of the above debt, Talam’s pro-forma debt leverage at the group level is expected to improve to 0.6x (FY 2003: 2.1x). The strengthened capital structure will afford the group the capacity to undertake more property development activities in the future.